It is where you are that matters: The spatial determinants of rural poverty in India

The spatial patterns of poverty in India are of considerable importance in themselves and for development theory and practice. This article examines the determinants of rural poverty in India using spatial econometric methods. It finds that while agricultural growth is the key determinant of rural poverty declines, there is significant spatial dependence in the growth rates of agricultural output. Irrigation is the primary driver of agricultural growth, and spatial variations in irrigation development seem to be associated with agro-ecological conditions which may be vastly different within Indian states, parts of which may be similar to those prevailing in geographically contiguous states. Poverty reduction strategies need to be designed in the light of spatial factors and using spatial methods. © 2006 International Association of Agricultural Economists.